The semi-weekly fisherman & farmer. [volume] (Edenton, N.C.) 1886-1887, 1887-09-16
A GREAT RAILROAD DEAL.
A Syndicate in Control of the
Baltimore and Ohio Road.
The Official Statement of the
Plan of Reorganization.

The announcement that a powerful svndi-
cate of bankers has obtained control of the
Baltimore and Ohio Railroad makes public
the most important railroad IDEAL" that has
been consummated in many years, and lifts
the financial cloud which has rested upon the
stock market for some months By this new
arrangement the Baltimore and Ohio road
passed into the hands of capitalists friendly
to the Pennsylvania Railroad, and upon
terms which remove it as a disturbing
factor in the trunk-line situation, and
make it really part of railroad combina-
ton that covers more miles of territory than
any other system in the world The official
announcement of the deal, issued from the
office of Drexel, Morgan & Co., the New
York bankers, Is as follows:
"A preliminary contract has been executed
to-day between the Baltimore and Ohio Rail
road Company and >. j. Morgan & Co. Bar
ing Brothers q Co. and Brown, Shipley 81
Co, of London, and their allied houses on
this side The contract provides for the ne
gotiation OF 100000 B. & o. consolidated
Give millions B. & o. preferred stock, for
the purpose of paying off the entire floating
debt of the company and placing it upon q
sound financial basis
1.-The conditions are as follows:
"First-The verification of statements, &c,
as made.
"Second-That the management of the
company shall be placed in competent hands,
satisfactory to the syndicate
Ihlrd-That satisfactory contracts shall
be made between the Baltimore and Ohio
and the other roads for New York business
which shall remove all antagonism between
them on the subject and insure the permanent
working Of the Baltimore and Ohio in entire
harmony with the other trunk lines; also
avoid construction or threat of construction
of expensive parallel lines north and east of
Philadelphia.
ir1fn tod 81
Drexel, Morgan & Co., Drexel & Co., Brown
Bros. & Co. and Kidder, Peabody & Co."
This announcement the World says, means
the retirement of Robert Garrett from the
active management of the great property
created by the energy and ability of his
father. 1t means that the Baltimore and
Ohio has become crippled financially by its
long and expensive fight for entrance into this
city and by It's maintenance of an improbable
telegraph system in opposition to the
Western Union 1t means that a combina-
ton of capitalists has agreed to come to the
financial assistance of the road and by the
negotiation of $10,000,0 900 of securities to
place it on sound basis. Itmeans that the
syndicate does this on conditions which
must appear very hard to Mr.. Garrett,
as they. place, the B. and Q.
friendly to the Pennsylvania Railroad, and
compel the abandonment of the long cherished
plan of the elder Garrett, the building of an
independent line into New York paralleling
handful of capitalists now really control
railroad system that covers nearly half a
continent in every direction, and with the
New York Central system absolutely controls
the trunk-line situation.
No mention is made in this announcement
of the telegraph, but it can bestated as almost
certain that the syndicate will not long carry
the burden of the telegraph, and that the
latter will sooner or later become part of
the Western Union. All that delays this con-
summation is probably the arrangement of
the terms and disposition of the other
ties TRich are now
The sleeping car system of the Baltimore and
Ohio will no doubt go to the Pullman Car
Company, the price of whose stock has been
rapidly advancing in anticipation of this re-
suit. The Baltimore and Ohio express has
already passed into the hands of the United
States Express Company. Thus the great
Baltimore and Ohio system is dismembered,
and its parts are swallowed up by rivals whose
it was unable to overcome